How would you Price your Thornhill Home?

March 29, 2015

One of the most asked questions that I get from my clients is the following: “how much do you think I should list my home for?”

It might seem like a straightforward question with a straightforward answer. Unfortunately, there are a number of different things that you have to consider. A few of the factors that you have to take into consideration are listed here.

Remember that your friends are not experts

Thanks to the global introduction of the Internet, you can get information just about anywhere. Some people read a few articles and immediately consider themselves experts. Some people might have sold their home recently, thus considering themselves experts as well. Some even brag about how much more they sold their home for if they sold above asking price. In that situation, I might have the following questions:

Was the listing below market price to begin with? (In order to generate interest)

Did it have a completed basement?

How many bathrooms were present in the house?

What type of garage space was available?

What were the schools in the area like?

How were the nearby transportation options?

You may have a home that appears somewhat identical to your friend’s home, you might even be selling it at the exact same time of the year. However, once I start asking these questions, my clients often realize that there are many ‘subtle’ differences that might be affecting the price. And suddenly the home is not as identical as they once thought.

Some sellers will overprice their home

The reason that someone might do this is because it leaves him or her some room to negotiate. If you aim higher than you originally were going to accept, you are able to come down a little with your asking price. Suddenly the buyer senses a deal, and the seller still ends up with the approximate amount that he or she wanted.

Some sellers price emotionally

Some sellers might use emotional investment when setting their price. Even if you hold a personal belief, remember that not everyone else is going to share your views. These are just some examples I have come across before:

My swimming pool is the best in the neighborhood

I spent a fortune on my wallpaper

That chandelier was imported from Rome after my trip there

I spent a year working my shelves, I know they are amazing

Some real estate agents will inflate the value

This happens quite often, a real estate agent is going to promise a high price. The only thing that this accomplishes is that the overpriced listing stays on a market for a long time. It might not sell at all, or if it does, it sells for significantly less (which leads to a price that you would have gotten much earlier if you had priced accordingly).

Sellers use market value to price their home

These are the smart sellers, the ones who talk to a real estate professional and actually take their advice to heart. This will help price the home competitively, which means that the home can sell quickly and for (nearly) the asking price.

Motivated sellers

If there are motivated sellers, some will list their house below the market price/value if they want to sell NOW. This can lead to multiple offers, and buyers might even try to outbid each other. In most of my experiences, the home is going to sell for around the asking price (or even higher) anyway.

For more information you can call me right now: 416-825-7888 or email angela@azgta.com